A pair of Raleigh real estate companies is betting a sweeping set of renovations — including the addition of a pickleball court and sky bar — will keep one of Durham's most prominent office towers attractive to current and prospective tenants.
Why it matters: It remains rough going for many of the region's office buildings, as companies continue to lease smaller amounts of office space than they did before the pandemic.
And that is especially true for office buildings that lack amenities or are in non-walkable locations.
Driving the news: Capital Associates and Chartwell Property Group are currently renovating the Durham Centre in downtown Durham, a 15-story tower originally built at 300 Morgan St. in 1986.
The building is home to several Duke offices, Duke Clinical Research Institute and the Greater Durham Chamber of Commerce, but more than half of its space is available for lease or sublease, according to online documents.
What's next: The renovations have already begun and are expected to be completed this summer. They will include:
An indoor pickleball court
A 15th-floor sky bar and lounge
A golf simulator room
Cafe space for a local vendor
A fitness space featuring saunas and cold plunges
State of play: This is the second time Chartwell Property Group has done a refresh on an older office building, having also invested heavily into The Grove Raleigh, the former headquarters building for Martin Marietta.
That building is now 90% leased after renovations.
